Court Grants Final Approval to $8.8M MCG Health Data Breach Settlement

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MCG Health will pay $8.8 million to resolve a consolidated class action lawsuit that alleged the company failed to prevent a March 2022 data breach that reportedly compromised the personal information of more than one million people.

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The MCG class action settlement, which was granted final approval by the court on October 9, 2024, will provide relief to a class of approximately 1,100,000 people whose personal and/or health information was accessed or acquired during the MCG data breach discovered around March 25, 2022.

The plaintiffs’ unopposed motion for final approval of the deal, filed on September 25, says that the $8,800,000 settlement will deliver to class members “tangible, immediate benefits” that address the possible harms caused by the incident “without protracted and inherently risky litigation.”

According to the deal’s official website, MCGDataSettlement.com, class members had until September 30 of this year to file a claim for settlement benefits, which include three years of credit monitoring services, reimbursement of up to $1,500 for documented “ordinary” losses suffered as a result of the data breach, and reimbursement of up to $10,000 for “extraordinary” losses.

Related Reading: MCG Health Hit with Class Action Over March 2022 Data Breach Affecting 1.1M Patients

Per the website, eligible individuals could also submit a claim to receive a pro-rated cash payment in lieu of the aforementioned cash benefits. The plaintiffs’ motion shares that this alternative cash payout made up the “vast majority” of the submitted claims and will come out to approximately $340 per claimant.

The settlement agreement relays that payments will be issued via check to class members within 60 days of the deal’s final approval, or within 30 days after any disputed claims have been resolved, whichever is later. Consumers who opted for credit monitoring services will also be enrolled within this timeframe, the document adds.

Court records indicate that United States District Judge Ricardo S. Martinez dismissed the class action lawsuit against MCG on October 9, officially closing the case.

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